Subject: Grandfather clause is a felony

January 2, 2007

Josephine J. Tao
Branch Chief

Regulation 203(b)(3)(i) is a felony

I am sending this letter to you as a concerned shareholder in the investment community. The SEC had no authority to turn failures to deliver prior to 01/03/05 into counterfeit securities by grandfathering failures to deliver into the marketplace. This is a grave injustice to the investment community.

You have had hundreds of comments in response to eliminating the illegal grandfather clause, and the continued postponement of the vote to abolish this is totally unacceptable. This clause is a felony and should be eliminated.

When an entity engages in a crime by selling that which is not theirs and have not borrowed, that entity must be prepared to accept the consequences by buying back what they had no right to sell in the first place.

Regulation 203(b)(3)(i) is an illegal exception to the mandatory close out rule. I am concerned that this has not been addressed as of yet.

The SEC became guilty of counterfeiting and subject to RICO charges the moment they transformed failures to deliver into counterfeit securities by exempting the inevitable failures to deliver prior to 01/03/05 from being closed out.

I believe it is very important that this clause be voted upon and abolished immediately so that the investment community can again have faith in the stock market that is so very important to our country’s stability.

I would like to thank you for your immediate attention to my concerns.


Jeanie Misanik